Russia Implements Post-Election Tax Hike Amid Fiscal Strain

Russia has implemented a significant tax increase, confirmed post-election, despite prior Kremlin denials. This action is assessed to be driven by a fiscal deficit exceeding government forecasts and is likely intended to fund the ongoing conflict in Ukraine. The reversal on tax policy raises concerns regarding the credibility of official Russian statements.

Why it matters: This policy shift indicates increasing fiscal strain on Russia and could have significant economic and social implications domestically, while also signaling continued commitment to the Ukraine war.